Non-U.S. Unitholders are generally subject to a 30% gross basis U.S. federal withholding tax on U.S. source interest income. For U.S. federal income tax purposes, Unitholders will be treated as deriving U.S. source interest by reason of their investment in United Hampshire US REIT. Non-U.S. Unitholders may be exempt from such withholding tax if certain requirements are satisfied.
In addition to being subject to the ownership limit intended to protect their eligibility for the exemption from U.S. federal income tax withholding on “portfolio interest” that will be treated for U.S. federal income tax purposes as distributable to Unitholders (the “Portfolio Interest Exemption”), non-U.S. Unitholders must comply with certain documentation requirements in order to be exempted from withholding tax under the United States Internal Revenue Code of 1986, as amended (the “IRC”), including documentation requirements related to the Portfolio Interest Exemption and documentation requirements under the United States Foreign Account Tax Compliance Act (“FATCA”).
Specifically, non-U.S. Unitholders must establish their status for FATCA purposes and their eligibility for the Portfolio Interest Exemption by providing an applicable IRS Form W-8, a U.S. Tax Compliance Certificate, and such other certifications and other information related to the Portfolio Interest Exemption and FATCA that is requested from time to time.
Non-U.S. Unitholders must also provide updates of any changes to their status for FATCA purposes, including information relating to their name, address, citizenship, personal identification number or tax identification number, tax residencies, and tax status. Such information may be disclosed or reported to the IRS, the Inland Revenue Authority of Singapore or other applicable tax or regulatory authorities for the purpose of compliance with FATCA. If non-U.S. Unitholders fail to provide or to update relevant information necessary for compliance with U.S. federal tax withholding requirements, including those related to the Portfolio Interest Exemption and FATCA, or provide inaccurate, incomplete or false information, amounts payable by United Hampshire US REIT to non-U.S. Unitholders may be subject to deduction or withholding in accordance with U.S. tax law and any intergovernmental agreements.
Unitholders that are “United States persons” for U.S. federal income tax purposes may be subject to different certification requirements. A Unitholder that is a “United States person” should contact the Unit Registrar to obtain the documents that must be submitted in order to be exempt from U.S. federal withholding, including under FATCA.